"My
long-term [extremely high forecast
price] call on gold is based on
the emancipation of physical metal
from paper gold. The tool of emancipation
is the warehouses of the futures
exchanges. For if the warehouses
of the futures exchanges cannot
be counted on to make normal deliveries,
then the exchanges will have to
make a change in the contract in
order to avoid default. They will
make that change to avoid default." ~ Jim Sinclair

"The
mantle is being passed. JPMorguen
has noticed the gold conduit from
London to China as being complete. They
noticed the London
bankers joining with the Chinese
Yuan Swap Facility. They noticed
the 15% to 20% arbitrage with Shanghai
in gold price. They noticed the
new Chinese crude oil futures contract
priced in Yuan, which should usher
in the Petro-Yuan Era. Game over
for the King Dollar, as the Petro-Dollar
will suffer sunset and cause enormous
impact craters in the USEconomy.
JPMorguen has ended its death grip
on the Gold market, and has joined
the new winning team of China &
Gold." ~ the Jackass (inspired by Andrew
Maguire)

"Joking
aside, not even Bernanke, Yellen,
or all the paper Gold Exchange Traded
Funds in the world will be able
to do much to suppress gold prices
from reaching their fair value when
gold production hits a standstill,
and when demand, especially by China,
is still in the hundreds of tons
each year." ~ Tyler Durden (editor of Zero Hedge, but in reality the China
demand is one thousand tons per
month)

"One
economic myth is that paper money
is wealth. The proponents of
big government oppose honest money
for a very specific reason. Inflation,
the creation of new money, is used
to finance government programs not
generally endorsed by the producing
members of society. It is a deceptive
tool whereby a TAX is levied without
the people as a whole being aware
of it. Since the recipients of the
newly created money, as well as
the politicians, whose only concern
is the next election, benefit from
this practice, it is in their interest
to perpetuate it. For this reason,
misconceptions are promulgated about
the MERITS of paper money and the
DEMERITS of gold. Some of the myths
are promoted deliberately, but many
times they are a result of convenient
rationalizations and ignorance.
Paper money managers and proponents
of government intervention believe
that money itself (especially if
created out of thin air) is wealth.
A close corollary of this myth,
which they also believe, is that
money supply growth is required
for economic growth. Paper money
is not wealth. Wealth comes from
production. There is no other
way to create it. Capital comes
from production in excess of consumption.
This excess is either reinvested,
saved, or loaned to others to be
used to further produce and invest.
Duplicating paper money units creates
no wealth whatsoever. It distorts
the economy and it steals wealth
from savers. It acts as capital
in the early stages of inflation
only because it steals real wealth
from those who hold dollars or have
loaned them to someone." ~ Ron Paul (who should mention that
monetary inflation kills capital
and the destroys the engines of
wealth)

"Earlier
this year, the Vanguard mutual fund
company correctly ascertained that
traditional measures of analysis,
such as corporate earnings, profit
margins, and a country's economic
growth rate, had become largely
useless when it comes to forecasting
stock market trends. The problem
is that there are many other factors
that are influencing stocks. We
find that many commonly cited signals
have had very weak and erratic correlations
with actual subsequent returns,
even at long investment horizons.
A country's GDP growth is very different
from its stock market outlook. We
cannot emphasize that enough." ~ Gary Dorsch (the contradiction is testament to Reich Finance, the false metrics
of wealth)

"No matter what kind of data we are
going to have going forward, brace
yourself for volatility. You may
want to look for protection. I hold
a substantial part of my net worth
in Gold because I do not like anything
else out there. It is terrifying
to be in stocks in my view, and
I sleep much better at night with
my gold holdings. Real wages have
been stagnant for a decade, when
the cost of living has gone up.
You have revolutions in the Middle East. You have Occupy Wall Street and the Tea Party in the US.
That means less political stability
and more government intervention.
The only good news in all of this
is that policymakers are predictable.
That provides opportunity such as
shorting the Yen or buying some
Gold. The risk is something is going
to blow up. But the more likely
scenario is that we are going to
just keep our heads spinning. We
will talk again at Gold $3000, and
they are still going to say Gold
is worthless. We have less stability
in the world. It is a global phenomenon." ~ Axel Merk

"My
doctor last week informed me about
a trip he made to Los
Angeles. He makes the trip there
every year. With shock written over
his face, he revealed how he witnessed
at first hand the countless amount
of people sleeping out on the streets.
Over the years the amount of such
unfortunate people have increased,
but not as many as this time. He
said the [United States as a] country
is finished." ~ JohannM (Hat Trick Letter client in Zurich Switzerland)

"Terrible,
but unfortunately true. I was in
Los Angeles this summer for the Fourth

of
July and the amount of homeless
people living on the streets is
increasing exponentially." ~KerryP (Hat Trick Letter client from San
Francisco)

"In
the last year, a new conclusion
has been arrived at concerning the
Amerrkan citizenry, probably true
of most of the Western population.
People pursue survival and happiness,
but also very importantly comfort
with some security. It is comfortable
to accept delusions and live under
false assumptions which provide
even a weird sense of security,
especially when confronting very
ugly systems replete with truly
evil elements. Those who attempt
to overturn the delusions and disprove
the assumptions can easily be dismissed
and called crazy fools or alarmists,
then ostracized from groups and
families." ~ Jackass (true of my own original family)

## INTRO GOLDEN NUGGETS

◄$$$ ANDREW MAGUIRE DISCUSSED THE CHINESE PETRO-YUAN CONTRACT AND ITS
IMPACT, WITH EXTENSIVE FOUNDATIONS
ALREADY PUT IN PLACE. THE BULLION
BANKS HAVE FLIPPED AND CONVERTED
TO LONG GOLD POSITIONS, SENSING
THE CHINESE MOMENTUM TO CREATE A
GOLD-BACKED CURRENCY. A KEY ELEMENT
IS THE BRITISH JOINING WITH THE
CHINESE YUAN SWAP FACILITY. $$$

The Jackass obtained a December 1st issue of the paid commentary from Andrew
Maguire, through a Hat Trick Letter
subscriber. In an effort not to
violate his business, but instead
to share his message, two important
segments are presented from the
MetalsTrades Commentary. In it,
he discusses the imminent launch
of a rolling spot gold contract
by the Chinese to compete with COMEX/LBMA
and the conversion of the big Bullion
Banks. The tide has turned, the
game is over, which must be played
out. Many technical traders and
believers in the NY/London gold
related propaganda will be caught
in a tremendous squeeze. The
following two paragraphs are by
Maguire, who is the consummate insider.
He provides a glaring view of the
future paths in both the Global
Currency Reset and the Global Paradigm
Shift. Some guidelines for the newer
readers are given. BRIC = Brazil
Russia India China, ECB = European
Central Bank, RMB = renminbi (Chinese
Yuan), BIS = Bank for Intl Settlements
(primary global central bank), FX
= foreign exchange currency market,
BB = bullion bank, LBMA = London
Bullion Market Assn, OTC = over
the counter market, GBP = British
Pound currency, ETF = exchange traded
fund, POG = price of gold. MSM =
mainstream news. Bolds and underscores
are mine, not his.

Maguire: The uncertainties caused by the prospect of US
default very recently triggered
China's
official news agency talk for a
de-Americanised world, urging the
creation of a new international
reserve currency. These statements
followed several other warning shots
recently fired at the USFed. It
is a mistake to ignore such warnings
as they are not hollow threats.
China is increasingly in a position
to take centre stage, having already
established direct trade agreements
with the BRIC's, Japan, Germany,
Australia, Chile, and the UAE, and
have recently moved to implement
direct swap deals with the likes
of the ECB and UK. The potential
size of these aggregated agreements,
are sufficient to loosen the
US dollar's anchor. This
is a big deal, as it enables very
large volumes of international trade
to be conducted directly in the
RMB without having to convert transactions
into the US dollar. One of the statements
released from the recent policy
meetings was the announcement
China is moving to price oil
futures in RMB. This piece of news
alone news is being grossly under-estimated
and all of the above agreements
undermine the dollar and are extremely
Gold positive, as the FED/BIS
will have far less influence diluting
the prices of gold and silver with
FX and derivative sales.

Maguire: What is flying under the radar and completely unreported, is that the
Fed and the insider BB's know that
the setting up of an internationally
accessible gold conduit will assist
China in facilitating
this accelerated move towards
internationalising the RMB/Yuan,
and presents an unanticipated leap
forward towards becoming a competing
global reserve currency.
In just a few short years, China has already cornered
the global physical bullion market
trade; the next step is competing
with the LBMA for a large piece
of the cash global gold trading
market. The primary tool to facilitate
such a radical move is the establishment
of a major new conduit here in London
to facilitate global access to a
brand new Chinese international
facing fully backed rolling spot
OTC contract. It is no coincidence
that the GBP/RMB swap deal was recently
implemented. Hijacking a large portion
of the global gold market trading
will complement China's
dominance in the physical markets
and shake up the current balance
within the over 5 $Trillion FX markets.
No one is talking about this, but
it is the primary reason the
BB's are moving net long in the
futures markets while trying
to consolidate the disingenuous
process of dislodging as much ETF
bullion out of the weak hands by
continually talking the POG down
in MSM appearances and client advisories.
We are near the end of this process,
as the bulk of the remaining ETF
holdings are in strong hands. [more]
This is the final straw to
break the LBMA's hold on the gold
and silver markets. Note
this is not being talked about anywhere
and will blind side technical sellers.
On the other hand, the BB's are
stealthily building long exposure
to gold and silver.

◄$$$ THE EURO CENTRAL BANK MIGHT BE ON THE VERGE OF ANNOUNCING A QE TO
INFINITY ALONGSIDE THE LEAD USFED.
HINTS ARE DEPARTING GERMAN HAWKS.
THE NEXT GERMAN STEPS DOWN FROM
THE EUROCB AS JOERG ASMUSSEN LEAVES
FOR DEPUTY LABOR MINISTER POST.
$$$

A strong hint of a change in the monetary wind comes from a critical resignation.

German Joerg Asmussen will leave the Euro Central Bank's
governing council and executive
board. He has been a vocal council
member, a monetary hawk not in favor
of extreme liquidity measures. He has announed the departure for
purely private family reasons. At
the same time, concurrently, another
outspoken German Jens Weidmann will
move on to take a job as Deputy
Labour Ministry job in the new German
Govt assembled by Merkel. Some struggles
are underway for the finance minister
post. The bigger surprise is that
Asmussen replaced Juergen Stark,
who once was expected to be Trichet's
successor. Stark dramatically quit
the EuroCB over an open dispute
over the central bank's bond monetization
program. It is in German DNA to
find monetary inflation disgusting
and abhorrent. The keen observers
wonder if these departures are the
latest indication that the ECB is
finally preparing to roll out a
very broad and controversial Quantitative
Easing program, as BNP bank analysts
predicted. Witness the possible
latest extreme policy maneuvers
to avoid a credit market breakdown
in Europe.
The Euro currency stands at risk.
The USFed cannot be alone in wrecking
the financial china shop. The
hyper monetary inflation must be
globally coordinated so as to avoid
localized distortion, in favor of
universal distortion. The Bank
of England and Bank of Japan will
follow like obedient syndicate doves
flying to a destructive tune, knocking
over items on the china shop with
broad wings. See the Zero Hedge
articles (CLICK HERE
and HERE).

◄$$$ ZERO BANKER PROSECUTIONS HAVE TAKEN PLACE, LINKED TO THE MULTI-$TRILLION
BOND FRAUD THAT EXPLODED IN THE
LAST HALF OF YEAR 2008. THE STATUTE
OF LIMITATIONS HAS REACHED DECEMBER
2006, THE CLOCK SLOWLY RUNNING OUT.
SUCH BOND FRAUD IS DIFFICULT TO
PROVE, WHILE MANY ENFORCERS ARE
NOT WILLING TO PROVE. $$$

Jed Rakoff of Federal District Court of Manhattan has handled many financial
fraud cases. He remarked on the
disappointing record to bring the
Wall Street perpetrators to justice.
In doing so, he outlined three problems.
1) It is difficult to prove criminal
intent to defraud when the investor
is several levels removed from the
designer and seller of the securities.
2) It is difficult to prove that
a counter-party was deceived and
actually relied on the other side,
when the party is sophisticated
within the market. 3) An institutional
shift is underway toward prosecuting
companies rather than individuals
within the company, which evades
personal responsibility. Rakoff
disagrees with the Attorney General
that prosecuting for profound high
volume fraud would endanger the
financial system. The Jackass believes
it is the first step toward a solution
to the stubborn entrenched financial
crisis due to insolvency, bad policy,
and fraud, aggravated by rampant
inflation on the credit side. The
second step in a solution is liquidation
of the big banks which operate as
criminal organizations, where legal
penalties are regarded as mere cost
of doing business within the Fascist
Business Model. See the New York
Times article (CLICK HERE).

◄$$$ ECONOMICS AND FINANCE COURSES CANNOT PROPERLY INSTRUCT STUDENTS IN
COLLEGES AND UNIVERSITIES ON THE
SHORTCOMINGS OF THE SYSTEM. THEY
CANNOT OPEN DISCUSS AND REVEAL ITS
FLAWS AND BROKEN ELEMENTS. MODERN
ECONOMICS HAS BECOME TOXIC IN EFFECTS
AND POLITICALLY CHARGED IN POLICY.
IT TOUCHES ON REICH FINANCE WITHOUT
THE AWARENESS OF THE MADDING CROWD.
$$$

The Jackass has mentioned the story about a superb Carnegie Mellon Univ professor
friend who teaches financial derivatives.
He had no comment when we discussed
corruption in banking and the effect
on derivatives, or any role derivatives
had in managing the corruption in
the bond market. He avoided the
topic in his course and stuck with
the pure unadulterated theory. The
larger issue is that professors
cannot talk about a number of things
in university level courses in Economics,
in Finance, and Banking. Sometimes
they are not aware of the broken
pieces, being poor students themselves.
Other times they deny the existence
of major brokenness and hope for
the best.

The taboo broken topics are many, like rigged financial markets, the
insolvent banks, money laundering
that keeps banks afloat, QE bond
monetization being a killer of capital
(not a stimulus), the conversion
of bank account depositors into
unsecured lenders to the banks without
standing, the absence of job creation
for graduates, the cockeyed nature
of stock valuations (with focus
on FaceBook, Google, Amazon, Groupon,
LinkedIn, now online dating Zoosk),
the lost industrial core (thus USFed
QE has no effect or traction), the
doctored economic statistics, the
paltry benefit from ultra-low interest
rates on bank CDs, the purchased
corporate debt ratings, the hidden
control mechanisms (like USDept
Treasury's Exchange Stabilization
Fund), the war economy factor to
USEconomy (with destructive trickle
down multiplier), the vile burden
on USGovt debt (from war and bank
welfare), the plethora of foreign
parts even in US-made products,
the stranglehold of both labor unions
and environmental controls, the
ownership of news networks and financial
media by five groups, socialism
and its wrecking ball on the USEconomy,
the oversized role of the government
sector (from bureaucracy), the reverse
effect of higher taxation (lower
the rate the greater the total tax
revenue known as elasticity). Note
the long list of broken economic
and financial pieces, in an extraordinarily
long sentence. Maybe one or
two above thorny topics are actually
discussed by progressive professors,
but surely they are the tiny minority.

In addition, other political factors might also be widely avoided, like ObamaCare
for its oppressive business tax,
like the end of 99 weeks for federal
unemployment checks, like unrestricted
illegal immigrants invasion with
labor market effect, like the upcoming
reset of home equity lines of credit
(HELOC) for the next four years,
like corruption in the mortgage
market from top to bottom. Thanks
for contributions by subscriber
JimL from Georgia.
Tragically, the US Economics training
and discipline is geared to Reich
Economics & Finance, as extensions
to the Fascist Business Model. The
academia sector seems unaware of
its role in mis-educating the students
with bad Keynesian dogma, while
avoiding the corruption and corrosive
factors. They urgently need to begin
teaching Sound Money principles
espoused by the Austrian School of Economics (not a university, but rather a competing school
of thought). The old Austrians were
too competent and uncorruptible.
So they were dismissed by the Wall
Street clique.

◄$$$ GOLD SMUGGLERS ARE ADOPTING THE METHODS OF DRUG COURIERS AND MULES.
THE INDIAN GOVT RULES OBSTRUCT REGULAR
COMMERCE. GOLD IS BEING SMUGGLED
INTO INDIA IN EXTREME VOLUMES. THE BOASTED REDUCTION
IN THE TRADE GAP IS A MYTH. THE
IMPORTED GOLD IS BETWEEN 20% AND
40% MORE THAN OFFICIAL DATA INDICATES.
$$$

Innovation in old fashioned transport methods is prevalent as couriers work
to sidestep the official crackdown
on imports of gold, stashing it
in imported vehicles, art works,
as well as bulk food shipments like
coffee and rice. Gold nuggets are
even being swallowed to evade border
and airport security. Sri Lanka,
Thailand, and Singapore are the
latest hotspots as authorities crack
down on travelers from Dubai, the
traditional source of smuggled gold.
Curiously, whistleblowers who help
bust illegal gold shipments can
win a larger reward in India than those who help
catch narcotics smugglers. That
is how important maintaining the
currency regime of money is. Kiran
Kumar Karlapu is an official at
Mumbai's Air Intelligence Unit.
He said, "Gold and narcotics
operate as two different syndicates
but gold smuggling has become more
profitable and fashionable. There
has been a several-fold increase
in gold smuggling this year after
restrictions from the government,
which has left narcotics behind."
Indians are smuggling in more
bullion than ever, using some innovative
methods. It is driven by the country's
insatiable demand for the precious
metal.

The official data shows a decline in gold purchases. However, the data significantly
underestimates the real level of
gold flows. The Current Account
Gap is not being narrowed, while
the black market thrives. The World
Gold Council estimates that 150
to 200 tons of smuggled gold have
entered India
in 2013, on top of the 900 tons
of official demand. A 20% addition
is not small, but the true addition
is likely twice that amount. Between
April and September alone, customs
officials seized nearly double the
amount of smuggled gold it nabbed
in all of 2012. See the Economic
Times of India article (CLICK HERE).

◄$$$ FRANCE HAS RECEIVED A UNITED NATIONS MANDATE FOR
INTERVENTION IN THE CENTRAL
AFRICAN
REPUBLIC.
FRANCE
IS IN LINE TO PILLAGE THE NATION
FOR GOLD, URANIUM, AND COLTAN. WITNESS
A REPEAT EPISODE OF THE PLANNED
RAPE OF AFRICAN NATION CHAD. $$$

As preface, recall that France decided to invade Chad in order to cleanse it
from its terrorists, which appeared
all too conveniently and whose stories
were blatant fabrications. More
accurately, Chad was marked for exploiting its gold output
to meet the German repatriation
demands from London
and Paris.
Next in the line of fire is the
Central
African Republic.
It seems the United Nations saw
fit to bless the cleansing of undesired
elements in the obscure African
nation. Perhaps they received an
intelligence report on the nation's
mineral riches with attendant terrorists
in view. The CARepublic nation
is the site of ample gold, uranium,
and coltan, all of which the Western
nations lust for. See the Irish
Times article (CLICK HERE).

The Eastern DRCongo is responsible for 90% of all coltan
produced in the world. It is a multi-$billion
business. However, think of the
blood diamond theme. The DRCongo
with its nearly 100 million people
has an annual Gross Domestic Product
of $20 billion, but where 50% of
its children never see their tenth
birthday. They die in droves from
horrendous conditions or are killed
in the endless conflict directed
by European colonialists. Most people
have not heard of coltan, but it
is found in cell phones, laptop
PCs, pagers, and other electronic
devices. It is important to everyday
communication in the United States and the industrialized world, but
it is making the conflict in Congo
more complicated. Columbite-tantalite
(coltan for short) is a dull metallic
ore found in major quantities in
the eastern areas of the Congo. When refined, coltan
becomes metallic tantalum, a heat-resistant
powder that can hold a high electrical
charge. These properties make
it a vital element in creating capacitors,
the electronic elements that control
current flow inside miniature circuit
boards. Tantalum capacitors are
used in a great many domestic electronic
devices. The recent technology boom
caused the price of coltan to skyrocket
to as much as $400 per kilogram
at one point, as companies such
as Nokia and Sony struggled to meet
demand. Their overlords organize
the Congo wars indirectly, a practice
done for at least six decades. See
the ABC News article (CLICK HERE).

◄$$$ NEW LARGE SCALE DIAMOND DEPOSITS HAVE BEEN DISCOVERED IN ZIMBABWE. THEY ARE NOT ALLUVIAL, SHOWING HIGHER
GEMSTONE YIELDS BUT UNDER HIGHER
COST TO PROCESS. $$$

The diamond deposits were found in Zimbabwe. The mining firm
DTZ-OZ GEO Limited is responsible
for locating conglomerate deposits
capable of producing 2.5 million
carats of top quality diamonds in
the province's Chimanimani area.
The company, a joint venture established
in 1994 with the Devmt Trust of
Zimbabwe,
has been doing extensive exploration.
The diamonds are smaller but
of higher quality than in the Marange
region. They yield 40 to 50% in
gemstone quality. However, the cost
of mining the stones is much higher
than alluvial diamonds. The
economics can be overcome for the
venture. The near-term goal is to
locate the Kimberlite pipe in the
proximity of the diamond field.
DTZ-OZ GEO also has an alluvial
gold mining operation in Penhalonga
with capacity to produce up to 20
kilograms per month, except it was
recently shut down over environment
issues. The new diamond mine will
add to two diamond producers outside
Marange, namely Murowa Diamonds
and River Ranch. Seven diamond mining
companies currently are operational
in Marange, extracting mostly alluvial
diamonds. Time is running out on
alluvial deposits as viable ventures.
The miners have failed to obtain
maximum value for their produce,
due to embargos against the trade
of the Chiadzwa diamonds in Europe
and the United States, due to allegations of human rights
violations. Think blood diamonds.
The global diamond watchdog Rapaport
has reported that the first tender
of rough diamonds from Zimbabwe to be held in Europe
following the removal of sanctions
would take place at the Antwerp
Diamond Tender Facility in mid-December.
The tender offers about 300 000
carats from Anjin, DMC, Jinan,
Kusena, and Marange Resources. See
the Zimbabwe Situation article (CLICK
HERE).

◄$$$ MEXICAN MINE OUTPUT IS BEING HIJACKED. THE MINING FIRMS ARE NOT REPORTING
THE THEFTS, BUT INSTEAD ALTER THE
FINANCIAL STATEMENTS. ALSO, THE
MEXICAN DRUG CARTEL IS INVOLVED
IN THEIR COUNTRY'S IRON
ORE BUSINESS. THE FORCED CONFISCATION OF IRON ORE
OUTPUT COINCIDES WITH GROWING EXPORTS
TO CHINA.
MINE OUTPUT IS BEING LOST DIRECTLY
FROM ROBBERIES AND INDIRECTLY FROM
ILLICIT WILDCAT OPERATIONS. $$$

The Jackass had a conversation in late November with a colleague who has made
first hand visits to the Mexican
mine properties. The man has been
a trusted colleague for several
years. He had many stories to tell,
but this one stuck out. Many
Mexican mine output trucks are being
hijacked by the Mexican drug cartels.
The regular output from mine activity,
shipped via routine truck transports
are being stolen. It involves
mostly silver bar production, but
also some gold bar production. The
mining firms also refuse to hire
Brinks trucks or other high security
vehicles, since easily identified
as targets for highway thefts. Those
are all being taken with hijacks
of a more violent nature, the drivers
left for dead. He said the Mexican
mines are coming up very low on
reported output, which has aroused
suspicion. The mining firms are
not reporting the stolen truck transport
of their valuable cargo, the
result of projects loaded with devoted
capital, extensive worker labor,
advanced metallurgy methods, and
passage of time.

The mine production in financial statements contains
lies and deceptions as deep as the
mine shafts as a result. They simply
report lower mine output. He did not know the percentage of output from Mexico
being stolen. One can only guess
it is not a mere 5%, a figure he
tossed out. He claims the mining
firms are in a panic. He also
mentioned that a few Canadian mining
executives have been kidnapped.
The information is spotty, unclear
about details on ransom demands
or bodily harm. The entire story
is frightening, but indicates a
strong motive not to invest in Mexican
mining firms. Witness one more reason
not to favor mining stocks, in addition
to government nationalization, labor
strikes, stalls over environmental
violations, court battles over title,
heavy dilution of stock shares,
fast rising costs, and suppressed
metal prices.

Mexican drug cartels have expanded their business reach. Long ago they diversified
their business into PEMEX oil theft,
pirated goods, extortion, and kidnapping.
In November, Mexican Govt officials
confirmed the cartels have entered
the country's lucrative mining industry,
exporting iron ore to Chinese mills.
The involvement began in 2010. When
the Mexican Military took control
of the nation's second largest port
at Lazaro Cardenas, the move was
aimed at cutting off the cartel
export trade, as in the point of
final sale. The state of Michoacan
is in focus. State detectives have
been killed and wounded in ambushes
during investigations. National
publicity has finally come. The
Jackass forecasted in summer 2007
that Mexico would become a failed
state. The evidence is mounting
to confirm the forecast. The Knights
Templar cartel and its predecessor,
the La Familia drug gang, have been
stealing or extorting shipments
of iron ore, or illegally extracting
the mineral themselves and selling
product through Pacific coast ports.
The protection racket is also ripe
in the region. So deeply entrenched
was the cartel connection to mines,
mills, ports, export firms, and
land holders that it required authorities
three years to confront the phenomenon
directly. Federal officials decided
to crack down on other ports where
drug gangs are operating. The ports
served as the vulnerable choke point.

Guillermo Valdes Castellanos is the former head of the country's top domestic
intelligence agency. His comment
attests to a failed state. He said
"This is the terrible thing
about the cartel taking control
of and reconfiguring the state.
They managed to impose a Mafia-style
control of organized crime. The
different social groups like port
authorities, transnational companies,
and local landowners, had to get
in line." Valdez Castellanos
confirmed that even back in 2010,
the La Familia cartel would take
ore from areas under concession
to private mining companies, sometimes
with the aid or complicity of local
farmers and land owners, then sell
the ore to processors, distributors,
and foreign firms. The government
response was to tighten rules on
exporters in 2011 and 2012, whereby
they were compelled to prove receipt
of ore from established recognized
sources. The export applications
from 13 companies were denied, unable
to meet the new rules. The problem
went beyond Michoacan or the Knights
Templar cartel, extending to the
states of Jalisco and Colima. The
illegal activity has been encouraged
by the great demand for iron by
countries such as China. Many trading companies
began to build up big stockpiles
of legally and illegally obtained
iron ore, later shipped for export.
Government data shows the amount
of iron ore exported to China quadrupled
between 2008 and the first half
of 2013, rising to 4.6 million tons
per year, precisely during the
period the La Familia cartel and
later the Knights Templar cemented
their control over Michoacan.

The seizures of ore are obtained from threats, extortion, direct robberies,
and other means. The output turns
up in a legal location, a form of
laundering. The cartels have also
done shakedowns of mining villages
like Aquila
in Michoaca since 2012. The Knights
Templar cartel has demanded that
residents hand over part of the
royalty payments from a local iron
ore mine operated by Ternium, a
consortium based in Luxembourg.
Alcala revolted and kicked out the
cartel, which had also been using
hired workers to extract the ore
without permit, in secret illegal
extractions. Ternium acknowledged
the irregular mining near its operations
in Aquila.
Thus mining firms are losing
output directly from robberies and
indirectly from illicit wildcat
operations. See the StLouis
Post Dispatch article (CLICK HERE)
and the Mining.com article (CLICK
HERE).

◄$$$ THE GERMAN WATCHDOG HAS STARTED A PROBE INTO GOLD PRICE FIXING.
THE FOCUS HAS BEGUN WITH DEUTSCHE
BANK, BUT WILL POSSIBLY EXTEND TO
OTHER BANKS IN EUROPE
AND THE UNITED STATES. THE VOICE
CLAIMS NO DEALS WILL BE STRUCK,
NO IMMUNITY GRANTED, NO HOLDS BARRED.
A STRONG HEAD-ON LEGAL INITIATIVE
HAS BEEN EMBARKED UPON. $$$

Germany's financial watchdog BaFin has started
a probe into suspected manipulation
of benchmark Gold & Silver prices
by banks. The story was reported
in the Money War Report. The Voice
made a comment on details behind
the high level report. He recently
repeated his stern warning that
BaFin is a very strong reliable
body which aids the prosecuting
efforts. He wrote, "BaFin
is totally independent and reports
to the minister of finance in Berlin.
BaFin is slow but very thorough
once they put their teeth into something.
They would never have had that announcement
published if they would not have
a rock solid case against all the
banks. The USGovt tried to quell
the investigation but after the
NSA spying on the chancellor's phone
and the arrogant attitude in dealing
with this matter, the US and the
UK can rest assured that there will
be zero tolerance and no mercy shown.
BaFin's head is a no nonsense woman,
known not having time for banker
pressures. She eliminated the guys
the Indian D-Bank Jain CEO tried
to bring into top key positions
at DB, dismissing them quickly.
She just shot them down, one after
the other. The proposed risk manager
she just put into a meat grinder,
now withdrawn. We shall see how
this will unfold. No immunity, no
deals, as these guys inside the
Gold trading offices will go down
hard. The decision has already been
made. BaFin can pursue pretty much
any bank in the European Union and
the United States. There is a
mechanism for following it in a
legal effective course."

## PRECIOUS METAL PERSPECTIVE FOR 2014

◄$$$ FOUR POSITIVES FOR GOLD ARE IDENTIFIED BY ERIC SPROTT. THEY ARE VALID
SIGNS WHICH POINT TO SYSTEMIC CHANGE
IN CAPITAL FORMATION FOR MINING
AND ASSOCIATION WITH INVESTMENT
BANKING ENTITIES. $$$

Eric Sprott is an industry icon in the gold world. Several months ago, the
Jackass expected two important developments,
that valid gold-based investment
funds would enter the banking business
through extensions to legitimate
financial firms, and China would court the North
American miners for gold supply.
It appears to have begun, demonstrated
on the Sprott front. However, the
move to traditional commercial banking
is nowhere in sight yet. Sprott
identified several promising encouraging
signals. It appears that Asians
might seek a strong supply line
to their own central banks for reserves
accumulation in both Gold &
Silver. The Big Money has been circling
the sector for a long time, finally
touching down in a real way. See
the King World News interview (CLICK
HERE).
The following are extremely positive
signals for gold and its heightened
demand.

1)The Sprott mutual funds are seeing
net investor inflows, as opposed
to redemptions, for the first time
in a long time. The trend has reversed
from outflows since 2010, now turned
positive.

2)Sprott recently signed and funded
a joint venture with the incredibly
large Chinese state-owned mining
company. The outbound investment
by the Chinese Govt has strong emphasis
into the junior mining sector. The
Sprott managers are in charge of
the liaison role.

3)Sprott is on the verge of making an
announcement for a similar joint
venture with another recognized
Asian investor name by the end of
2013. The Asian strategic investors
have returned to the junior mining
sector in earnest.

4)The Sprott institutional lending fund,
which aims to raise $350 million
for their lending business, is very
close to securing an extremely strong
cornerstone input from a name-brand
North American institution.

◄$$$ PENTO HAS MADE SOME FORECASTS FOR 2014. HE EXPECTS THE USFED TO CONTINUE
QE TO INFINITY, USTBOND YIELDS TO
STAY ARTIFICIALLY LOW, AS THE CENTRAL
BANK INCREASES ITS BALANCE SHEET
FURTHER. THE RESULT WILL EVENTUALLY
LEAD TO A GIANT MOVE UP IN THE GOLD
PRICE IN YEAR 2014. HE FORESEES
NEW HIGHS LIKE OVER $2000 PER OUNCE.
THE USFED WILL NOT TAPER ITS BOND
MONETIZATION, SINCE LONG-TERM BOND
YIELDS WOULD MOVE TO 5% AND WRECK
ALL. $$$

Michael Pento is president and founder of Pento Portfolio Strategies. He is
also author of the book entitled
"The Coming Bond Market
Collapse" about how to
survive the coming credit market
collapse. The following is a quote
from Pento. See the King World News
interview (CLICK HERE).

"The
reality is that the economy is being
artificially maintained and manipulated
by our central bank and government.
Right now it is an overwhelming
consensus on Wall Street that in
2014 the Fed will taper, the economy
will grow, and interest rates will
rise gradually. They also believe
that gold will continue getting
crushed as rates rise. That overwhelming
consensus is wrong and it will not
happen because it is an extremely
overcrowded trade. The money
to be made is to bet against that
overwhelming consensus. Either the
Fed will end QE and the economy
will fall apart and take down real
estate and stocks, or there is no
tapering and the gold market will
have a major reversal. The inflationary
increase in the money supply, which
is based on the Fed's balance sheet,
has increased from $2.3 trillion
to $3.9 trillion today. That
is a remarkable 70% increase. So
if bond yields are all about the
credit and inflation risks associated
with owning that debt, then the
4% 10-year Note will be the absolute
bottom because the 4% 10-year Note
existed before we increased our
nation's debt by 46%, and the Fed's
balance sheet by 70%.

But
the reality is that the interest
rate is not going to be 4%, instead
it is going to be much closer to
5%. A move on the 10-year Note from
2.75% today to 5%, in rather quick
fashion, is not small and it is
not gradual. It is going to happen
next year if the Fed tapers, and
that will crater the entire phony
US
economy. This is why there is not
going to be any significant tapering
in 2014. This is also why Gold
will begin a dramatic move the upside
starting next year as it marches
to new all-time highs. This
is how betting against that overcrowded
trade will show big profits for
investors."

◄$$$ VON GREYERZ CITES CHINESE DEBT GROWTH AND GLOBAL DEBT LEVELS AS PRINCIPAL
FACTORS BEHIND THE UPCOMING MASSIVE
RISE IN THE GOLD PRICE NEXT YEAR.
CHINA LEADS THE WORLD IN CORPORATE DEBT LEVELS.
LOOK FOR THE MAJOR CURRENCIES TO
FAIL AND PUSH THE GOLD PRICE UPWARD
IN A DRAMATIC MANNER. $$$

Egon von Greyerz is a fund manager at the Matterhorn in Switzerland,
and a Hat Trick Letter subscriber.
He lays out many positive factors.
He anticipates failing major
currencies to be an important story
in the new year. He expects
to see the paper Gold price continue
to plummet, bound by corrupted futures
contracts where the bank inventory
is fast moving toward zero. He foresees
the physical Gold price rising dramatically
as a result of the split between
paper and metal, the physical market
no longer marching to the COMEX
dictated price. He describes an
arms race but in monetary growth
between China and the United States, the destructive effect similar.
The following is a quote from von
Greyerz. See the King World News
interview (CLICK HERE).

"A
world built on debt and printed
money can never survive in its present
form. It is only a question of when
things will change. We have discussed
many times the problems in the West
and in countries like Japan, but there is less understanding of what
is happening in China,
partly because we do not easily
get access to their data. But what
is now becoming clear is that China
is in a very similar credit bubble
to the rest of the world. Chinese
banking assets have, since the end
of 2008, grown by 166% to (a staggering)
$24 trillion. This is an increase
of $15 trillion in five years.
That is absolutely astonishing,
and shows that China
has also created an unsustainable
credit bubble that is likely to
end in tears. During the five years
that China
grew its banking assets by $15 trillion,
the US grew theirs by only $2 trillion. The Chinese
banking system is now 2.5 times
GDP. In addition, China has this massive shadow
banking system and nobody knows
the exact size of it. Also, corporate
debt in China
is the highest in the world, at
150% of GDP. So the Chinese
situation is very dangerous for
the world, and it is a situation
that most observers have not focused
on.

The
falling currencies in 2014 will
be directly reflected in the price
of Gold. The 2-year correction in gold is likely to be over, and the bear market in
currencies will be reflected in
a major bull market in Gold. The
problem we have seen with the gold
price this year is that the gold
paper market, which is up to 100
times greater (in size) than the
physical market, has driven
down the price of physical gold.
But 2014 could be the first year
where we see the paper gold market
go towards its intrinsic value,
which of course is zero. The physical
market will become the only real
gold market. That will have a massive
effect on the gold price which we
will see beginning in 2014." The element not discussed is where the true Price of
Gold will be posted and published.
The Jackass expects it will be displayed
in the form of an average spot physical
price, extracted from several key
locations in the world, much like
a LIBOR price but without the collusion
and bank participation. In other
words, not like the LIBOR at all!

## EURASIAN ENERGY DEVELOPMENTS

◄$$$ UKRAINE SITS ON PRECARIOUS FENCE, A FOCAL POINT
FOR THE CAPTURE OF EUROPE.
THEY CUT A DEAL FOR GAS IMPORTS
THROUGH POLAND
AND HUNGARY.
THEY PLACATE PUTIN IN RUSSIA
BY NOT JOINING NATO AND BY PERMITTING
THE RUSSIAN NAVY FULL ACCESS. WITHOUT
REALIZING IT OR WANTING IT, THE
NATION WILL REVOLVE WITHIN THE RUSSIAN
ORBIT POWERED BY NATURAL GAS. RUSSIA
REQUIRES THE VAST PIPELINES OF UKRAINE
TO SUPPLY THE EUROPEAN MARKET. PUTIN
WILL NOT BE DENIED THE VITAL PIECES
TO BUILDING THE EURASIAN TRADE ZONE.
$$$

In forging two energy deals, Ukraine has not been lost to Russia in a visible sense.
Its President Yanukovych completed
major deals with Russia and Slovakia, within a complex energy network system.
Rather, the Kiev
regime is attempting to sit on the
fence, where the balance of power
is shifting East and will surely
win the European prize for Russia. Ukraine will continue to flirt with
both East and West, attempting to
maintain a semblance of energy independence.
Putin might permit the perceptions
while enjoying the reality.
At end October, giant Gazprom claimed
Ukraine owed $882 million, with pre-payment of
all gas supplies required if the
debt not paid. On November 9th,
Ukraine completely stopped all gas imports from
Russia and instead has received all its gas from
Europe. Putin
is angry and wants guarantees that
Russian gas can pass through critical
Ukrainian pipelines to reach the
European market. Tremendous pressure
continues to be applied by Russian
President Putin, to ensure that
Ukraine
does not enter into a full association
with Europe.
The nation is caught in a squeeze
and will remain in the pressure
spot. The smart observers concluded
uniformly and without reservation
that the European Union lost on
all counts of importance.

The process of turning East begins by the nation to join the Russian Customs
Union. Other concessions were made,
like suspension of the Ukraine
entry into NATO membership, and
the extended duration of the Russian
Black Sea fleet access until year
2042. At the same time, Ukraine
agreed on the conditions for a gas
deal with Slovakia for importing European Union gas through
the Slovak pipelines. The key is
that Ukraine has given itself a second source
besides Russia
on the natural gas supply.These
new flows, including gas from Poland and Hungary,
could exceed 10 billion cubic meters
annually, enough to meet Ukraine's
entire import needs for the domestic
economy. The Kievregime is playing a very delicate game, and must not anger
Putin beyond an unclear threshold
level. The Kiev officials ponder the adoption of European standards, but must conform
to Russia
dictates. One is reminded of the
Russian proverb about "a
smart calf sucking milk from two
cows." The important
point is that Ukraine
might be granted the right to tap
Eastern European gas supplies, provided
that Gazprom keeps the Ukraine
pipeline control to Europe.
See the Zero Hedge article (CLICK
HERE)
and the RIA Novosti articles (CLICK
HERE
and HERE).
The second RIA article pertains
directly to the Post-Soviet Customs
Union.

◄$$$ CHINA, JAPAN,
AND SOUTH
KOREA CONTINUE
FREE TRADE AGREEMENT TALKS. MANY
ITEMS MUST REACH ACCORD. EXPECT
A UNIFIED ASIA
TO BE THE MOST CRITICAL PORTION
OF THE EURASIAN TRADE ZONE. ONCE
COMPLETED ON DETAILS, CHINA WILL DRAW IN GERMANY
AND THE REST OF EUROPE.
$$$

China, South Korea, and Japan have formally begun the third in a series
of Free Trade Agreement talks. In
2012, the combined Gross Domestic
Product of the three nations reached
$14.3 trillion, accounting for 20%
of the world total and 70% of Asia's
total. They are heavily active
in the import & export trade.
Nothing will stop the development
of the Asian portion of the grand
plan in the Eurasian Trade Zone.
It will begin with a pan-Asian agreement
with possibly a regional currency.
Look for the Chinese Yuan to serve
the role out of expedience, even
momentum from the Yuan Swap Facility.
Later on the Europeans will be pulled
in, using the powerful Chinese influence,
an easy decision when the US &
UK & Western Europe will appear
in ruins. See the China Daily article
(CLICK HERE).
Furthermore, South
Korea and China
are forging closer economic ties.
Strangely, it is motivated in part
by their shared animosity toward
Japan,
whose actions over two centuries
have been hostile in violent exploit.
The USGovt is angry at the unity
shown by Asia, the scrutiny shown
as clear, but not much the United
States can
do about it except to wage military
war and other violent acts like
the Fukushima nuclear events (not a natural event).
The dispute over the islands is
truly laughable, conjured in Langley
offices. See the Bloomberg article
(CLICK HERE).

◄$$$ EASTERN ASIA IS BUSY FORGING IMPORTANT OIL DEALS.
THE NEIGHBORS TURKEY AND IRAQI KURDS SEALED A SECRET OIL DEAL
LIKELY TO ANGER IRAQ
AND ITS CONTROLLERS BY THE POTOMAC
RIVER. ALSO, ON THE OTHER SIDE OF
THE IRAN
TALKS, SOME OBSTACLES REMOVED, THE
IRAN OIL MINISTER HAS CONDUCTED TALKS WITH WESTERN
ENERGY FIRMS. WATCH THE DELIVERY
PRESSURE POINTS FOR CONFLICT, SINCE
VITAL TO THE EURASIAN TRADE ZONE.
$$$

Oil & gas from Iraqi Kurdistan will soon be exported
via pipelines through Turkey, after a slew of contracts were signed
in secret in late November. The pact was completed between Nechirvan Barzani (prime
minister of Kurdistan Regional Govt)
and Recep Tayyip Erdogan (Turkish
prime minister). The agreement is
certain to anger officials in Baghdad
and WashingtonDC. That the Turkish
leader was a signatory is an extreme
slap in the USGovt face, and a kick
in the NATO groin. The Iraqi central
command still claims dominion over
all of Iraqi oil resources. The
conflict is tribal, between Sunni
Arabs and Kurds with Turkish heritage.
The energy deal is regarded as an
encroachment on the sovereignty
of Iraq. The state-backed Turkish Energy Co (TEC),
which Turkey
set up to operate defiantly in Northern
Iraq, has also signed a contract
to operate in 13 exploration areas.
See the Al Jazeera article (CLICK
HERE).

Iran has begun formal talks with potential
investors in its energy industry,
according to oil minister Bijan
Zanganeh. In the aftermath of the
Iran Talks, the irony is that
the Western oil firms lust to re-enter
Iran to do business. They will be shut out
totally. Iran
remains a major crude oil export
nation, possibly with a brighter
energy future than Saudi
Arabia. Iran
is the location of the richest largest
oil & gas reserves. The powerful
US energy firms have been barred by the USGovt
from entry in Iran
for nearly two decades. With
sanctions on the way out, Iran will
almost certainly turn to Europe,
and hope they possess the best technology.
The many European giant energy firms
will embark soon on multi-$billion
investments and tap the Iranian
reserves, with zero US energy firm involvement. Watch Iran
first settle trade in gold terms,
and then sock away trade surpluses
in gold bullion, for a combination
boxer assault to the US face. Expect Iran to become a key element
in the extended BRICS and a primary
energy provider to the quickly forming
Eurasian Trade Zone. Watch the pressure
point of the Suez Canal for Iranian oil delivery to the European market, and watch
the other pressure point of the
Shiite Gas Pipeline to the Syrian
port, also for delivery to the European
market. See the Reuters article
(CLICK HERE).
The conflict in Syria
was all about energy pipelines,
not chemical weapons, not dictator
abuse.

## GOLD SETTLES INTO ITS THRONE

◄$$$ INDIA WILL REVERSE GOLD RESTRICTIONS BY THE POLITICAL
REGIME, WHICH INFLUENCES THE CENTAL
BANK GOLD POLICY. THE RESPONSE REACTION
HAS BEEN POWERFUL. SMUGGLING IS
ON THE RISE, WHICH CANNOT BE TAXED.
THE RULING PARTY WILL BE SHOWN THE
DOOR IN THE NEXT ELECTIONS IN MAY.
THEIR PUPPET STRINGS TIED TO THE
GOLDMAN SACHS HOUSE WILL BE SEVERED.
$$$

The broad-based policy against gold ownership by the Indian Govt and the Reserve
Bank of India (central bank) has not resulted in much
success. Smuggling and evasion have
accelerated. The next important
Indian elections take place in May
2014. Word is attaining a consensus
that most gold restrictions will
be reversed by the incoming BJP
(Bharatiya Janata) party, with certain
nonsense to be spouted about a success
in policy to date. The ruling
INC party and its Harvard minions
tied to Goldman Sachs offices, who
put restrictions on imports, are
going to be washed away like a summer
monsoon. Anger nationally is very
high. They committed a cardinal
sin, enraging the religious sects
by pursuing temple gold. They will
be swept away. The Indian population,
especially the wealthy and elite,
are very intelligent and determined.
They invest in gold, and have done
so for a thousand years. As gold
owners, they win when the currency
is debased. The economists pump
out progaganda, but gold has outsmarted
the economists. The RBI working
group study finds that gold has
outperformed stocks and bank deposits
in the last five years, more than
three times over, and six times
over bank deposits and 10-year government
bonds. Only gold, more than
any other asset, has consistently
beaten price inflation. The same
is true of US assets like stocks,
bonds, housing, and bank CDs. Gold
is the ultimate hedge against both
unfettered inflation and bank corruption.
In fact, for India, no collateral, stocks,
or property are as liquid as robustly
strong as Gold bars and talens and
biscuits and jewelry. They differ
distinctly from the United States in this respect.

The economic establishment rails against Gold in defiance but also in futility.
It does not obey their disruptive
policies based in obstruction. Gold
defies government policies because
the Indian people love gold, and
even revere it. The official
policies are founded on the faulty
economic theories of the West, which
treat gold like any other commodity
for trade and profit. The West attempts
to conceal its implicit adversarial
role to unsound fiat paper money,
but Indians comprehend the ploy.
The theories that project gold as
India's
villain might work in the West,
but not in India. The Asians generally are leaps and bounds
smarter than Westerners when it
comes to concept of wealth. The
West, in particular the US
and UK,
is committed to paper wealth built
on contract securities without tangible
basis.

Gold has emerged as the winner in economics,
successfully hedging inflation and
currency debasement. India
struggles with policy that ensures
financial security for the nation
and its individual citizens. They
strive for a practical and workable
policy for gold, including the vast
gold import trade. The Jackass
view has steadily been that Indian
entrepreneurs must seek domestic
gold mine output, in order to avoid
the risks that have arisen on the
trade deficits with direct effect
on the Indian Rupee currency decline.
As the natives invest in gold to
protect themselves from price inflation
and political waste to buy votes,
they have consequently pulled down
the Rupee exchange rate. The result
has been more price inflation, and
more reason to invest in gold as
a hedge. Gold purchases do not weaken
India.
They defend against the Western
financial implosion. But India needs domestic gold
production urgently. India accounts for one quarter of the
global gold retail market, yet it
produces almost nothing in crude
gold supply. Imports supply
the demand, a serious flaw. EuroRaj
does not agree on this point, calling
a vast mine enterprise unpractical.
It might be difficult, and it might
be full of obstacles, it might require
a decade to bear gold output, but
it is urgently required in my view.
A nation cannot import its financial
security, plain and simple. It must
grow it or build it. Perhaps
the Himalayan foothills are declared
sacred and off limits, like cows
to the food supply. The citizens
starve of native gold, like they
often starve from lack of food.
See the BJP Kanataka article (CLICK
HERE).

◄$$$ THE INDIAN GOVT HAS BEGUN TO LAY THE GROUNDWORK FOR JUSTIFYING MASSIVE
GOLD IMPORTS WITHOUT OFFICIAL RESTRICTIONS.
THE CLAIM HAS BEEN MADE BY THEIR
EXPERTS THAT THE NATION CAN AFFORD
GOLD IMPORT OF $30 BILLION PER YEAR,
HALF THE CURRENT IMPORT VOLUME.
THE NATION INSTEAD NEEDS A DOMESTIC
GOLD SOURCE. THE CURRENT GOLD IMPORT
VOLUME IS ALMOST TWICE THE DESIRED
LEVEL. THE STRESS ON THE INDIAN
RUPEE WILL CONTINUE, WHEN THE WESTERN
BANKER LINKS WILL BE DISMANTLED.
$$$

The Indian Economic Advisory Council chief Rangarajan declared that India can tolerate US$30 billion worth of gold
imports per year, in a surprising
turnaround in official policy. A
major factor behind the high Current
Account Deficit (CAD) in the last
fiscal year was high gold imports.
The rationalized statement was laughable,
but part of the move away from the
Western banker devices and strategy.
Rangarajan said, "As inflation
comes down and as financial assets
become more attractive, perhaps
this part of demand for gold can
come down and we can probably tolerate
USD 30 billion worth of import of
gold." The comment was
delivered at the Delhi Economic
Conclave, an important forum. The
nonsense did not evoke laughter,
but rather relief, whatever the
justification. The audience surely
reacted to the implied policy shift,
rather than to the bland statement
itself.

Earlier at the conclave in a keynote speech, Finance Minister Chidambaram said
India cannot finance a CAD as it did in 2012-13.
He also said India
cannot afford to pay for US$50 billion
in gold import without serious damage
and nasty consequences. The CAD
touched a record high of US$88.2
billion in 2012-13, as a result
of extremely high gold imports (845
tonnes) and high crude oil import
costs. So India
imports huge amounts of black gold
and yellow gold. The disruptively
high Current Account Deficit led
to the sharp decline of the Rupee
exchange rate which plunged to an
all-time low of 68.85 per USD by
end August. The Indian Govt
and the Reserve Bank of India
took numeous steps to curb gold
imports. The measures showed results
in the data of a decline of in-bound
shipments, but the smuggling volume
has risen significantly. By latest
data, the Gold & Silver imports
declined 80.55% to US$1.05 billion
in November year over year. The
imports reached a high mark of US$5.4
billion in November 2012. The panel
discussion at the conclave might
discuss the necessity of restrictions,
even the apparent success, but behind
the walls is a massive smuggling
trade that is understood in private.
See the Money Control articles (CLICK
HERE
and HERE).

◄$$$ TURKEY PREPARES TO EXPORT SIGNIFICANTLY MORE GOLD
TO IRAN
IN THE NEXT YEAR. AS THE IRAN
SANCTIONS EASE, THE EXPORT WILL
GROW SHARPLY, INCLUDING FOR JEWELRY
(FORMERLY BANNED). $$$

Turkish gold exports to Iran should rise dramatically as Western sanctions
against Iran
are eased and later removed. Expect
a huge increase in gold exports
to Iran. More importantly, Turkey
will be permitted to export jewelry
to Iran,
which has been banned by Iran.
A big positive effect will come
to the Turkish business sector.
The Jewelry Exporters Assn is excited
at the prospects for next year.
The Iran Talks accord will open
the doors to commerce. Most sanctions
ordered by the USGovt and European
Union will be suspended, on a temporary
basis for an initial six month period.
Turkey
exported $6.4 billion worth of gold
to Iran
in the first nine months of year
2012. However, it closed the year
2012 at only $6.5 billion in gold
exports due to the latest sanctions,
in a very poor finish. The data
is according to the Turkish Statistics
Agency (TUIK). Turkey exported a mere $1.6 billion in
gold to Iran
in the first nine months of this
year in 2013. Expect a return
to an annual pace of about $8.5
billion in gold exports to Iran. The three nations of Iran, Turkey,
and India
are of the utmost importance to
the physical gold market. They are
totally off the US
radar, which is focused in mind-numbing
manner on the corrupted COMEX. See
the Hurriyet Daily News article
(CLICK HERE).

Recall that physical gold demand and physical gold inventory and physical gold
shortage will break the Western
criminal gold cartel devised by
Kissinger over three decades ago,
when he embarked on the official
demonetization of gold. It was the
backside to the Petro-Dollar recycle
into USTreasury Bonds. The strategy
resulted in the systemic failure
of the United
States, when
coupled with the Most Favored Nation
status granted to China. Thanks to EuroRaj,
who supplies a steady stream of
rich information, articles, and
opinions from his corner of the
world. He provides strong links
to the London bank sector as well.

◄$$$ US-BASED GOLD MINE OUTPUT IS DOWN SLIGHTLY IN SEPTEMBER VERSUS SAME
MONTH LAST YEAR. THE YEAR TO DATE
GOLD MINE OUTPUT IS ALSO DOWN BY
A SMALL AMOUNT. THE ARTIFICIALLY
LOW GOLD PRICE IS HAVING AN EFFECT,
BUT LESS THAN THE JACKASS FORECASTED.
$$$

Gold production by US mines declined 5% in September on a sequential basis,
which does not carry much meaning.
The September mine output was 19,300
kilograms (=620,509 troy ounces).
Year over year comparisons are what
matter. The Sept 2012 gold mine
output was 19,600 kg (=630,154 oz).
The decline was 1.5% on the month,
year over year. The trend is
best compared over several months.
According to the most recent US
Geological Survey data (post-revision),
gold output from January through
September in 2013 was 170.0 tons
in 2013, versus 173.6 tons in the
first nine months of 2012 for strict
comparison. The decline was 2.1%
for the nine month run, year over
year. The dominant states are
Nevada and
Alaska with a five to one ratio favoring the robust Nevada. On US output, Nevada boasts 74.1%,
Alaska
13.8%, and other states a mere 12.1%
together. See the MineWeb article
(CLICK HERE).
Thanks to SRS Rocco for the last
year gold data. To be honest, the
Jackass anticipated a big decline
in gold output would reflect the
much lower corrupted gold price.
My error is primarily due to the
long lead times in gold industry
project management, with contractual
obligations even if not profitable.

◄$$$ IN DEEP TROUBLE WITH CASH FLOW, BARRICK IS COURTING CHINA.
THE BROKEN MINING FIRM IS CONSIDERING
THE SALE OF
GOLD OUTPUT AT SPOT TO CHINA.
THE DEAL WITH CHINA
IS CALLED FOR AS PART OF A VAST
RENOVATION. THE NEW CHAIRMAN JOHN
THORNTON HAS DEEP CHINA
CONNECTIONS. $$$

Incoming Barrick Gold Chairman John Thornton has friends in high places in China, including the country's premier, central
bank chief, and anti-corruption
czar. He seeks to convert the ties
into new business opportunities
after several costly setbacks. Outgoing
Chairman Peter Munk chose him as
his successor for these ties, and
persuaded the grant of a US$11.9
million initial bonus to the new
chairman. The company is a syndicate
cog, and a grotesque failure, a
banker playground. It was beset
in the last year by $14 billion
in project writedowns. Its recent
$3 billion share secondary issuance
was a flop, intended to defray the
gigantic impact crater to its balance
sheet.

Thornton arrived in June 2012, and since then
has been laying the groundwork with
the Chinese. He comes from 20 years
at the crime center called Goldman
Sachs, with no mining experience
(a company requirement). He wishes
to tap China and to continue its
emphasis in copper mining. Indications
are strong that Barrick is posturing
to sell its gold directly to China's reserve bank to help increase their gold
reserves. Thornton
said, "This is just a matter
of logic. If the biggest central
bank in the world has explicitly
told the world that it intends to
diversify over time into various
asset classes, and if one of those
asset classes is gold, and if you
are the biggest gold company in
the world, ipso facto the likelihood
there will be some kind of relationship
there." Barrick poses as
the biggest mining firm in the world,
but it is a colossal failure and
wrecked field, steeped in arrogance
and replete with banker footprints.
Thornton has
extended a hand to Zhou Xiaochuan
at the Peoples Bank of China only insofaras setting up a working relationship
with Barrick. The new chairman plans
to build a strong lasting link to
China,
far beyond any one-off deal for
a gold sale. He seeks an approval
from shareholders in initial dealings.

Thornton has set sights on Barrick locking in a modest contract with the Chinese, like
with a Chinese construction company
to handle Pascua Lama in the South
American Andes
region. The idea is only a concept
at this time. In the past, Thornton when at GSax won the contract to take
some Chinese government controlled
telecom services public in 1998.
He had taken British Vodafone public
in the late 1980 decade. The former
GSax CEO Hank Paulson paved the
way on those past deals. Those past
successes enabled Thornton
to make solid relationships with
Politburo Standing Committee leaders
in China, after the senior level
officials were given promotions
to run the country. Thornton resigned from the boards of News Corp
and HSBC to become the Barrick chairman.
He remains on the boards of Ford
Motor and Brookings Institute. With
no mining experience, Thornton created
waves in the gold sector by saying
he was open to practice of forward
gold sales once again, justifiying
it as wise in locking in price,
thus mitigating the downturn in
gold prices. Barrick abandoned
the practice in 1999, but has suffered
several $billion in losses on its
hedgebook. It has even conducted
a string of fraud-strewn secondary
stock issuances to cover the book.
They never covered it, lying each
time, only covering a small portion.
No lawsuits came as a result of
the misrepresentation in a clear
sequence of securities violations.

Keep in mind that Thornton is a Wall Street banker without a mining background. It was
mainly his decision last year to
bring in management consultant McKinsey
for a formal evaluation of Barrick
strategy. The little known CEO Jamie
Sokalsky, who took the role in June
2012, has sold off less profitable
gold mines, and sold their energy
subsidiary. The firm has a long
list of assets on their portfolio,
many being legacy assets with poor
production results. Maybe Barrick
can sell China
a scad of Evergreen gold contracts,
the ones that do not require delivery
of gold bars, as in ever. They were
popular over a decade ago, primary
tools to suppress the gold price.
Papa Bush on the Executive Board
at the time probably had a key influence.

Conclude that Barrick will try to dump its troublesome Pascua Lama mine project
on China. They might try to dump other mine projects
in trouble also on China. In return, the Chinese Govt might eventually
see a hefty set of gold shipments
to lift its already fast growing
gold reserves. The Chinese know
how to cut deals with foreign nations,
with trade offered on the other
side of the table, usually with
a small mountain
of USTreasury
Bonds in a dump site. Recall
the US
banker foundation in Barrick. Any
big pact with China
might confirm that the banker syndicate
will cooperate with China in return for some hidden
control of financial direction in
the Middle Kingdom. So Barrick will
sell gold spot and forward production,
mostly to China, and dump some giant properties on China. Conclude that Barrick
in all practicality is now owned
and operated by China, or will soon be.
See the Globe & Mail article
(CLICK HERE)
and the Bloomberg article (CLICK
HERE).
In fact, the Chinese asset acquisition
binge continues apace. Its buying
spree is unlike anything the world
has ever seen. Many deals have been
cited in past Hat Trick Letter reports.
See the Before Its News article
(CLICK HERE).

◄$$$ NORTH KOREA IS RUMORED TO BE SELLING LARGE AMOUNTS
OF GOLD TO CHINA,
FROM ITS RELATIVELY SUBSTANTIAL
GOLD RESERVE HOLDINGS. THERE IS
PRECEDENT FOR PAST GOLD SALES FROM
TWENTY YEARS AGO. $$$

Reports out of South Korea suggest that wayward thug North Korea is actively selling large amounts of
gold bullion to China.
They are in possession of a surprising
amount of gold reserves, even though
their economy is a veritable basket
case. New agencies with cross border
connections reported the sales.
The North Korean Govt does not
report its gold holdings to the
IMFund. However, reports back in
2007 suggested the country held
gold reserves of around 2000 tonnes,
thus a significant secondary player.
Given the traditionally good relations
between Pyongyang
and Beijing,
the PBOC could tap the gold and
exploit its neighbor's hardship.
History bears that North
Korea has a
longstanding substantial gold mining
industry, going back thousands of
years. It is believed that the country's
largest gold mine may produce around
8 tons of gold per year, with many
smaller mines in active status.
The sale of NK gold might actually
keep the sick inbred leaders actively
engaged in their military weapons
program amidst severe economic troubles
that keep their population at the
edge of starvation.

Some precedent actually can be cited. Back in the 1983-1993 period, around
one ton in gold bullion per month
was sold through the London
LBMA. They raised funds during
another global recession period.
Again in 2006, a known gold &
silver sale was completed with Thailand. However, in the
last twenty years, the pathetic
deviant nation has kept to its founder's
declaration (Kim Il-sung) not to
sell any gold reserves. North Korea is actually yet
another Asian nation with a strong
belief in the gold asset value.
If some sales of gold bullion are
indeed being conducted with China as buyer, it would suggest
severe hardship on the economic
front since floating North Korean
debt is out of the question. Any
gold sales would be executed government
to government, on the quiet. See
the MineWeb article (CLICK HERE).

◄$$$ SHORTAGE HAS HIT GRAN VALORA AND PRO-AURUM IN NORTHERN
EUROPE. THE VAT TAX WILL KICK IN
AT A HIGHER RATE NEXT YEAR. $$$

A Hat Trick Letter subscriber FM in Helsinki Finland
reported on shortage in Europe.
He placed an order with Gran Valora,
a small precious metals dealer in
Germany, and was forced to settle with a Cook Island bar, since the desired Andorra
bar was sold out. The dealer
mentioned a 15-fold increase in
demand compared to the same time
last year. He specifically stated
that the mints are not able to cover
the demand they see on certain products.
When he checked with ProAurum, one
of the largest dealer website in
Germany, most of their metals products were sold
out. The dealer at Gran Valora confirmed
the obvious nature of manipulated
price linked to feverish demand.
Also, a current factor at work in
the Value Added Tax. New 2014 VAT
legislation in Germany is set to go into effect. At that time,
coins and bars, now declared legal
tender, will be sold at the higher
VAT rate.

## GOLD DEMAND LED BY ASIA

◄$$$ THE GLD EXCHANGE TRADED FUND IS LOSING ITS INVENTORY RAPIDLY. IT
IS CALLED CORRECTLY THE BULLION
CENTRAL BANK FOR QUICK RAIDS, ITS
INVESTORS THE TRUE DIMWITS IN THE
CROWD. THE LEVEL HAS SUFFERED A
39% DROP FROM THE DECEMBER 2012
PEAK. $$$

Without this planned reservoir of available gold bars, the COMEX would have
defaulted several months ago. The
GLD fund, formally known as the
SPDR Gold Trust, was created in
order to deceive dimwit investors
while forming a last ditch inventory
of gold bars to supply the COMEX
gold market. It is being drained
quickly. The expert analyst EuroRaj
watches it closely, noting the nature
of raids by the big US and London
banks. He has concluded that an
acceleration will soon occur. It
will not be drained faster by departing
investors, but rather by more rapid
removal to supply both the COMEX
and the Shanghai Exchange. The $200
differential is no longer minor
with Shanghai.
Instead of a linear decline rate,
expect a constant decay rate that
will reveal the acceleration in
drainage. The COMEX shutdown is
within view but still not imminent.
The Global Currency Reset might
have a profound effect on the COMEX,
like turning off the lights, or
officially converting it to Cash
& Carry without any more futures
contracts.

◄$$$ PHYSICAL SUPPLY HAS NEVER BEEN TIGHTER AT THE SWISS REFINERS. WITHOUT
PRECEDENT, THEY OCCASIONALLY HAVE
DIFFICULTY FINDING A GOLD SOURCE
FROM WHICH TO SATISFY THE HUGE DEMAND.
THE ARTIFICIALLY LOW PRICE IS HAVING
AN ENORMOUSLY DISRUPTIVE EFFECT
ON THE REFINERY BUSINESS. NEVER
BEFORE HAVE THE SWISS HAD DIFFICULTIES
IN SOURCING GOLD. SUPPLY APPEARS
AS VERY OLD GOLD BARS. THE CHINESE
AND EVEN SAUDIS ARE RESPONSIBLE
FOR THE OUTSIZED DEMAND. $$$

Alex Stanczyk took a tour of several Swiss refineries with his Ango Far-East
staff on an annual scheduled inspection.
One refiner in particular has been
unable to source gold, which has
occurred several times this year.
Stanczyk was shocked at the reports
he was given. He wrote, "They
are bringing in good delivery bars,
scrap, and dore from the mines,
basically all they can get their
hands on. This gentleman has been
in the business for 37 years. He
was there during the last bull market
in the late seventies. I asked
him when was the last time this
has happened, that he was unable
to source gold. He said never.
I clarified it, asking: let me make
sure if I understand what you are
saying to me. In the last 37 years
you have worked in the gold industry,
this has never happened? He said:
this has never happened. There was
one other comment that was fascinating.
He said sometimes when they get
gold in, it is coming from the back
corners of the vaults. He knew this
because these were good delivery
bars marked in the 1960s. This
is a huge supply squeeze, worse
than anything that has happened
in the last four decades. At some
point there is going to be a massive
squeeze on the price."
The 50-year old gold bars indicate
extreme shortage.

The stress on the refiner business is enormous. They have expanded their capacity,
working three shifts, around the
clock 24 hours per day. Some have
anticipated a reduction in demand
sooner or later. But no, the demand
continues. Over 70% of the kilobar
demand comes from China.
The largest refiner quoted above
is sending ten tons per week to
Chinese clients. As a group, the
Swiss refiners are sending 2000
tons per year to China. Combine
the Perth Mint shipments, the domestic
Chinese mine ouput, plus all the
Chinese owned mining firm output
at various locations around the
world, and Chinese cumulative demand
is exceeding the global mine output,
amazingly. They are purchasing
the gold bullion for wealth generation
and a firm foundation for the next
financial system chapter. Lastly,
the Saudis are responsible for an
outsized demand also. They are gathering
more 1-kg bars, and probably far
fewer USTreasury Bonds on a marginal
monthly. The Swiss are recasting
400-oz gold bars into the 1-kg format
for the Saudis. It is becoming widely
known that the Saudis are breaking
ranks with the USGovt, which is
evident in their higher gold demand.
Jansen anticipates a gold market
squeeze of historic proportions.
See the InGoldWeTrust article by
Koos Jansen (CLICK HERE).
The Voice confirmed, this being
the worst physical supply squeeze
ever seen in over thirty years,
in his words. Refer to Switzerland,
London, and
New York City

◄$$$ TURKEY'S GOLD IMPORTS AND
INVESTMENT DEMAND HIT RECORD HIGHS
IN YEAR TO DATE FIGURES. THE GOLD
PURCHASE FROM IRAN
VIA TURKEY CONTINUES APACE WITH
NO INTERRUPTION. THE IMPORTED GOLD
DEMAND FROM TURKEY IS RUNNING AT AROUND
145% GROWTH VERSUS YEAR 2012. THE
DEMAND IS BEING SEEN IN SEVERAL
AREAS, A BROAD-BASED PHENOMENON.
$$$

According to the latest figures from Borsa Istanbu, the country imported 270.7
tons of gold during the first eleven
months of this year. The year is
almost complete. The pace is
more than double that of year's
2012 imports of 120.8 tons over
the full twelve months. The
growth comes to 145% annualized.
Turkey seized the lower gold price offered, as
part of a sensitive physical market
with tradition. Also some pent-up
demand had built up, after months
and possibly a couple years the
consumers had been priced out of
the market. The demand is very broad-based.
Cameron Alexander, an analyst with
Thomson Reuters GFMS, said "Official
gold coin demand has more than doubled
so far this year; gold investment
demand has also more than doubled;
and jewelry demand has rebounded
by around a fifth this year."
The confirmation came from the London
based World Gold Council, which
stated Turkey gold investment
demand hit all time high during
January to September. The exceptional
momentum of demand has been sustained.
The gold investment in Turkey has continued beyond
the first half of 2013, as many
watchers had wondered about an unbroken
pace. Demand for the first nine
months of the year is a robust 92.8
tons, a figure that exceeds any
annual total since our records began.
See the Scrap Register article (CLICK
HERE).

◄$$$ OCTOBER CHINESE GOLD IMPORTS FROM HONG KONG
REACHED A MASSIVE 131 TONNES. THE
DEMAND HAS INCREASED. CHINA IS ON PACE TO EXCEED 1000 TONS IN HK-IMPORTS
FOR THE FULL CALENDAR YEAR. AT 2400
TONS FOR CUMULATIVE CHINESE DEMAND,
THEY WILL TAKE AT LEAST 80% OF THE
GLOBAL 2900 TONS OF GOLD MINE OUTPUT.
$$$

Not slowing down, net Chinese gold imports through Hong
Kong accelerated in October to 131.2
tons. They have imported over 100
tons of gold from HK for the sixth
consecutive month. Low prices stimulate
demand, met often by exchange trade
funds in the West being drained.
The demand strength is in part due
to jewelers and retailers who purchase
gold to build up stocks ahead of
peak season. The rabid volume
highlights the conservative figure
for Chinese gold imports via the
Hong Kong window,
estimated at 1000 tons. The full
year import total will likely be
around 1200 tons. Victor Thianpiriya
from the Australia & New Zealand
Banking Group in Singapore said, "It is a strong number
and it certainly puts China on track to import more
than a thousand tons. You do get
the usual seasonal pickup towards
the last quarter of the year, but
a lot of the Chinese were also taking
advantage of prices that have been
coming off." The total
Chinese demand for jewelry, bars,
and coins rose 30% in the twelve
months through September, while
usage in India
gained 24% over the same twelve
months, according to the London-based
World Gold Council. Indeed Chindia
is the juggernaut duo, aided by
Turkey & Iran to form the Golden Fab Four.

Contrast to the recent story from China's biggest jewelry company
Chow Tai Fook, which reported almost
doubled sales through the first
half of the current year. China
also imports through the Shanghai
route. Including this vibrant city
import, the official full year national
importation will crease the 2000
ton level easily. Then add on their
likely domestic gold production
this year of 420-430 tons. Chinese
annual consumption this year appears
to be on the order of 2400 to 2500
tons, which amounts to over 80%
of the latest estimates of global
annual gold output at 2900 tons.
Gold continues to move from West
to East, at an accelerating rate,
given the artificially low price.
Either China
is bleeding from the big gold ETFunds,
or the New
York & London
bankers are betraying their ETF
clients by dispatching their gold
in the dead of night. The big new
factor will be Western mine output
directed to China, bypassing the
market entirely, a Jackass forecast
made two and three years ago. When
the Western banks and citizens finally
awaken to reality, and wish to place
their own orders for gold, they
will be forced to deal with China. Not much gold supply
will be left, but worse, the
channels will be dedicated to China for shipment, even under
contract. Above is the data
from the Hong Kong Census &
Statistics Dept. See the Mine Web
article (CLICK HERE)
and the Bloomberg article (CLICK
HERE).

◄$$$ ARAB GOLD IS BEING REPROCESSED FOR THE MORE RIGOROUS CHINESE STANDARD,
MACLEOD TELLS KEISER. REGARD THE
STANDARD CHANGE TO BE PART OF THE
DEMISE OF THE PETRO-DOLLAR AND THE
RISE OF THE CHINESE FINANCIAL LEADERSHIP.
$$$

Alasdair Macleod is the indefagitable analyst at GoldMoney, where as research
director he notices key changes.
He notes that Arab investors
are ordering gold to be reprocessed
by Swiss refineries to meet the
higher purity in Chinese standards.
The trend implies a shift of Middle
Eastern economic and political ties
from West to East. The trade winds
have shifted. The typical London
standard bars of 400-ounce gold
at .995 purity are being recasted
in Switzerland in high volume.
They are sent to Arab holders as
1-kg bars at .9999 purity, which
meets the higher Chinese standard.
Macleod suggests we might be entering
a post-Petrodollar world. In which
case, USTreasury Bonds could be
flowing back into New
York and London in pure dollar form and thus cause high inflation. Then again,
they might be sopped up with USFed
higher QE volume, thus producing
greater monetary inflation, the
preferred scourge while the economies
are left to die on the vine.

Clearly much of the volume shipments are part of the
massive Shanghai
arbitrage where at minimum a $200/oz
price differential is posted and
exploited. A suppressed gold price has its inherent disadvantages of a rapid depletion.
Host Max Keiser and guest Alasdair
Macleod suggest that unless gold
markets are rigged, the FOREX and
LIBOR rigging will not work. They
are all rigged together in grand
collusion, and all being broken
down together. See the Keiser interview
(CLICK HERE)
on the Russia Today television network,
where Macleod appears at the 15:23
minute mark.

◄$$$ THE CENTRAL BANK OF VIETNAM WILL BUY BULLION GOLD
TO INCREASE FOREIGN CURRENCY RESERVES.
THEY SENSE RISING INSTABILITY IN
THE FINANCIAL SYSTEM. THEY WISH
TO PRESERVE THE GOLD PRICE STABILITY
WITHIN THE SMALL ASIAN NATION. $$$

Nguyen Quang Huy is Director of the Foreign Exchange Dept of the State Bank
of Vietnam. He said the central bank is considering
all possible solutions, including
the purchase of bullion gold, in
order to increase the foreign currency
reserves. His justification seems
errant. Yet any gold demand
is good demand. He perceives the
global economy as having made a
notable recovery. He expects the
USFed to tighten monetary policy.
He might be correct in noticing
an improvement in the domestic Vietnamese
Economy, but his global perspective
is mistaken. As the growth with
stability returns to his native
land, he expects the demand for
other assets to grow. Governor of
the State Bank Nguyen Van Binh reported
that the volume of the bullion gold
demand has decreased sharply. Previously,
banks and enterprises used to trade
8500 taels of gold per day, but
the figure has dropped to 2500 taels
per day recently. The consensus
opinion among local bankers is to
proceed with gold purchases, but
with no intention to intervene in
the domestic gold market. The gap
between the international gold price
and the Vietnamese gold price has
narrowed. See the Vietnam Net article
(CLICK HERE).

◄$$$ US JEWELRY IMPORTS DROPPED BY THE LARGEST AMOUNT ON RECORD. THE CONSUMER
WEALTH EFFECT IS HORRIBLY NEGATIVE.
PERHAPS SOME DOMESTIC RECYCLING
OF GOLD JEWELRY IS AT WORK. $$$

Whatever the reason, according to the Bureau of Labor Statistics, the US jewelry imports in the month of October inexplicably
posted their biggest annual drop
on record. With genuine curiosity,
Tyler Durden posits that BLS seasonal
adjustments have not been recently
updated. With tongue in cheek, Durden
surmises that a massive surge in
underground jewelry artisans has
taken control in the black market.
He also wonders aloud that people
might celebrate Bernanke's centrally
planned economic renaissance by
wearing bones and sporting tattoos
instead, or else men and women have
forgone such superficial trinkets
as necklaces, bracelets, and rings.
Obviously Wal-Mart, Sears, and other
stores have made some competition.
Perhaps a considerable amount of
recycled jewelry has been sent to
the discount stores. Zales recently
announced the shutdown of some stores.
In Jackass view, the sign of US
diminished wealth is everywhere,
in lack of gold demand, empty shopping
malls, reduced retail store staff,
and legions of homeless people in
every major US
city. The Eastern
Hemisphere is seeing rise in wealth,
while the West is seeing a decline
in wealth. Note the relinquished
factories, widespread bank fraud,
engrained unsound money, and pervasive
war machinery for the underlying
factors. See the Zero Hedge article
(CLICK HERE).

## GOLD PRICE LIKE A COILED SPRING

◄$$$ WILLIAM KAYE SENSES THE EQUILIBRIUM WOULD BE ATTAINED FOR THE GOLD
PRICE AT $2500 PER OUNCE. A RETEST
OF VERY SIMILAR CONDITIONS HAS OCCURRED,
JUST LIKE LAST JUNE. THE ENTIRE
FRACTIONAL GOLD BULLION BANKING
SYSTEM IS IN THE PROCESS OF FRACTURING.
THE BIG BULLION BANKS WILL SUFFER
THE SAME FATE AS ABN AMRO, CONVERTING
TO CASH SETTLEMENT WITH NO GOLD
METAL. THE GLD FUND RAIDS INCLUDE
THE ELITE CONVERTING THEIR SHARES
INTO LARGE GOLD BAR DELIVERIES AT
ATTRACTIVE PRICES. THE COMEX IS
CLOSE TO FULL COLLAPSE, EVIDENCE
BEING THE ABSENT DELIVERY UNDER
CONTRACT IN CLEAR VIOLATION. $$$

William Kaye is the bold outspoken fund manager based in Hong
Kong, who a long time ago was at
Goldman Sachs. He makes a string
of good points, which will be related
in summary form. They are his thoughts,
mostly his words, put in a few paragraphs.
Wholesale gold demand has been strong,
including from central banks. The
bank cartel struggles to find physical
metal with which to continue to
suppress prices. They are implicitly
permitting a massive migration of
gold bullion from West to East.
Kaye made a stunning comment, "My
own feeling is the equilibrium price
for gold is probably twice where
it is currently trading, and possibly
even higher. All other forms of
portable wealth that I can identify,
none of which have thousands of
years of history as money like gold,
have already reached or are now
approaching all-time highs."
The other assets he cited are diamonds,
art works, even fine wine, and unusual
items like rare maps. The manipulation
evidence and footprints are everywhere
to be seen. The gold market has
entered backwardation once again.
The GOFO forward rates have returned
into negative ground. The same conditions
appeared last June, which could
mean a double bottom, useful for
a price launch upwards. The horrendously
negative sentiment confirms the
bottom as well. See the King World
News interview (CLICK HERE).

The major bullion banks led by the largest among them, have switched. The #1
US bank is very long gold, positioned as usual
with several other major bullion
banks for the next major move. The
long position as a group indicates
a major gold price rise, and soon.
They might be creating a grand deception,
by using the enormous OTC market
to effectively conceal their big
net short side. The dark mystery
is the ongoing liability from outstanding
unallocated gold accounts that JPMorgan,
Goldman Sachs, and the other bullion
banks possess. Likely they will
never be repaid, made more clear
by two recent defaults earlier this
year. See the ABN AMRO default in
April, and their associated Rabobank
default, the result being a forced
redemption with cash settlement.
Major problems are laced throughout
the bullion banks, where reckless
fractional games are being played,
with grand backfires. Kaye made
a stunning comment, "My
suspicion is the entire fractional
reserve gold system, ultimately,
probably within the next year, will
go the way of ABN AMRO and Rabobank.
They will all settle for cash when
the market begins to make an important
up-move, which could be first quarter
or second quarter of next year."
He anticipates that people will
be scrambling for gold elsewhere
as they are denied gold at their
own bullion banks. They will not
want to hold the cash they receive.
He expects the big banks will be
declaring force majeure, and the
COMEX will simply collapse. The
exchange will convert into a cash
arena. The gold futures contract
might go away, since it will have
no deliveries, a situation already
upon us since the summer months.

When the gold banking system is visibly wrecked and the
major exchange becomes a Cash &
Carry arena, Kaye expects the Gold
price to hit $3000, $4000, $5000
per ounce. The reason is crystal clear. The
supply of available gold bars in
existence is not enough to satisfy
the 90 to 100 paper claims per ounce
of actual gold that exist. He believes
insiders are accumulating gold,
some using the GLD fund for conversion
at very attractive prices. The
propaganda from the financial press
reports an elite player like Soros
exiting GLD shares, when they are
converting to metal bars in high
volume. They do so in lots of
100,000 shares to walk away with
small truck loads of gold bars.
Each GLD share is one tenth of a
gold ounce. So a 100k block means
10,000 ounces of gold valued at
US$12.5 million or so. The deceptions
are easy to wade through and to
decipher. The paper gold market
is being manipulated down, while
the physical gold is being hoarded
gathered and accumulated at a frenetic
pace. An enormous ongoing bull market
in physical gold is in progress,
which is fueled stronger with every
paper market ambush. See the King
World News interview (CLICK HERE).

◄$$$ THE BIG US-BANKS ARE STOCKPILING GOLD FUTURES CONTRACTS IN A PAPER
ACCUMULATION. JPMORGAN LEADS THE
PARADE IN CONVERTING TO A MASSIVE
NET LONG GOLD POSITION. THEY CLEARLY
FORESEE A GOLD RESURGENCE. IT PRESAGES
A GIANT UPWARD MOVE IN THE GOLD
PRICE. NEVER HAVE THE CORRUPT BIG
BANKS HELD A LONG POSITION IN GOLD
UNTIL THIS YEAR. IT HAS GROWN FOR
THE JPMORGAN LEDGER ITEM IN THE
LAST FEW MONTHS TO ALMOST 70,000
CONTRACTS. THE POSITION GROWS EACH
MONTH. IN FACT, AS JPMORGAN BLOCKS
DELIVERY TO INDIVIDUALS AND INSTITUTIONS,
AND FORCES CASH DELIVERY, IT HOARDS
THE GOLD FOR THEMSELVES ON DELIVERY
DOMINATION.

ALWAYS BEWARE OF THE STRANGE SCENARIO THAT CHINA
HAS TAKEN FULL CONTROL OF JPMORGAN
AND IS USING THEM TO GATHER IN GOLD
BULLION EN MASSE. THE CLUE WAS THE
CHINESE CONGLOMERATE PURCHASE OF
ONE CHASE PLAZA (JPM HQ). $$$

The following is from the TF Metals Report and my colleague Mr Ferguson, done
on December 7th. His irreverance
equals my own, but his work is high
quality. He demonstrated the built
JPMorguen net long position in gold.
His sentences will be taken liberally,
with some comments of my own injected.
The story is compelling, of how
JPM has switched from the perenniel
net short gold position to a rather
substantial net long position in
the last several months. One could
surmise that JPM has reacted to
the USFed official QE hyper monetary
inflation by reversing their position,
and betting on a Gold rise past
the $2000 level and beyond.
After all, gold is the primary inflation
hedge, and QE is the epitome of
inflation abuse. As first noted
in the July Bank Participation Report,
a US Bank is now massive long the
COMEX gold futures. From our experience,
we can safely conclude that due
to the sheer size of the position,
at 75,000 contracts, it had to be
JPMorgan. The conjecture at the
time last summer can at last be
rather safely demonstrated to be
true, the proof easy to detect.

TF estimated that among a net long
position averaging 75,000 contracts,
probably at least half the position
was in the front month Dec13 contract.
The position was then rolled into
Feb14 contract and the April14 contract,
but not without causing some extreme
volatility. The JPM House used the
sudden price moves to their selfish
advantage. Additionally, since
JPM issued almost three million
ounces of gold to the other big
banks through the COMEX delivery
process for Feb13, Apr13, and June13
contracts, it was to be expected
that JPM House would use their long
position to stand for delivery this
month in a dominant fashion.
They did so. JPM will eventually
stand for 7,000 to 8,000 contracts
in December, not to break the COMEX
just yet. They should stand for
the same amount in February and
April of next year, provided the
COMEX does not suffer a cave-in,
or the Global Reset renders the
metals exchange as Cash & Carry
mart.

Proof of the JPM net long position will arrive in the volume of gold they actually
take in delivery during December.
A miniscule volume like earlier
this year would poke a giant hole
in the entire TF analysis, the major
JPM conclusion on turning bigtime
long gold would be refuted. TF looked
for JPM to end up stopping over
90% of the December gold contract
for delivery, his record having
been clear. The result data on December
4th was breathtaking, in his words.
There were 2472 deliveries announced.
Of those 2472 deliveries, the JPM
House account stopped (took delivery)
on a robust 2389 contracts, equal
to 96.6% of the total. The data
totals for the first five days of
the month were:

Total Deliveries = 3558

Total Stopped by JPM = 3400 (95.6%)

Total Issued (thus far) by HSBC = 2216

Total Issued (thus far) by Scotia = 787

Next for comparison like a control group, consider three months of full data
earlier in the current year. Back
in the first half of this year,
when JPM was desperately converting
a 75,000 net short position into
a 75,000 net long position, the
big US bank was stuck when deliveries
were made against it by the other
banks. For the delivery months of
Feb13, Apr13, and June13, the data
totals for the entire batch of three
months were:

Total Deliveries = 34,571

Total Stopped by HSBC = 13,768

Total Stopped by Scotia (including March & May) = 2257

Total Stopped by Deutsche Bank = 5918

Total Stopped by Barclays = 3596

Total Stopped by JPMorgan House = 547

Total Issued by JPMorgan (House & Customer) = 31,939

The COMEX data tells a convincing story, as the December month goes exactly
opposite to the months earlier this
year in our effective comparison.
Conclude that JPMorgan wants
their gold back fast! They have
cornered the COMEX gold market in
order to make this happen. They
have refused delivery to qualified
clients holding contracts, using
whatever coercion they can to deny
legitimate demands for gold delivery.
They have forced cash settlement
on those contract holders. JPMorgan
was net long around 65,000 to 70,000
COMEX gold contracts, as of the
first week of December. Expect the
JPM colossus and its best friends
to prevail as victorious. Any decline
in the gold price of $120, for instance,
would cost JPM a ripe $1 billion.
With a dominating market position,
having cornered the gold contracts,
and having denied individual delivery
demand, the JPM House will not
only prevent any further large price
declines, they will engineer the
Big Gold Bull Rally. Of course,
they might gather in more gold contracts,
adding to their dominant position.
In the last ten trading days, the
gold price has been locked in a
tight range, hardly moving, serving
as testimony to the rugged JPM position
to stymy the market.

Next consider that the JPM COMEX net long position could
be a massive hedge for offsetting
an equally large net short position
at the OTC. This is unlikely. The JPM sudden desire to take delivery in December would
not be consistent with such a notion.
Given the greedy grab of almost
all the December gold deliveries
directed to the JPM House Account,
one would be way out on an unlikely
limb to deduce that JPM was overall
net neutral on gold. As footnote,
we might all be fools on stage for
the big bank. It is possible that
all the CFTC and CME data is a grand
fabrication with no linkage to reality.
The exchange officials have issued
a disclosure to deny accuracy of
the data. The first JPM net long
position came to light in July.
It is now playing out in real time,
having grown to a very large net
long position. That is a long time
to manage a silly charade. TF believes
the data and story to be accurate.
The big bank crime centers do not
care about the public perceptions,
or whether they catch wind of the
great flip by JPM to net long. As
TF concluded, "JPM does
not give a rat's ass that you and
I know this stuff. By the time everybody
else catches on, [the gold] price
will have already moved and everyone
will only look back with hindsight.
JPM just wants their gold back
before the current fractional reserve
bullion banking system breaks, prices
skyrocket again, and a new global
currency regime takes hold.
And now, for the first time ever,
they have cornered the COMEX gold
futures market in order to ensure
that it happens." This
is potentially an historic point
in time. A grand Global Currency
Reset in the West and installation
of a Gold Trade Standard in the
East would be a fitting followup
climax.

The data from the next day on December 5th showed more of the same effect. JPMorgan
appeared to be preparing a major
squeeze of the Speculators and managed
fund lads. The COMEX delivery data
showed JPM took another 238,900
ounces, and mostly from one source
at HSBC. It is JPM who is cleaning
out the COMEX registered gold. Some
producers might also be involved.
In part the IRS angle might be at
work. Some of this gold might be
devoted to Germany
toward the repatriation. Another
possible angle could be that JPMorgan
took deliveries, so as to hand them
over to China.
Recall that China
has taken some massive counter-party
positions on Interest Rate Derivatives.
Rob Kirby has postulated that
China was given massive IRS tax
flow derivatives years ago, possibly
linked to Mao Era gold on lease.
With the USEconomy in shitstorm
dire straits, the income is much
lower, possibly in default of important
contractual obligations to China.

Run mind with imagination, which could very possibly be true. The sale by JPMorgue
of their headquarters complex in
South Manhattan
offers another important high stakes
clue. If they sold One
Chase Plaza
to a Chinese property conglomerate
last month for half its value at
$725 million, then perhaps something
extremely large is happening that
is part of reshaping the world financial
structure and the balance of geopolitical
power. Like maybe China
has JPM cornered, and is using them
to serve as coulees and sherpas
to carry the gold bars en masse
over the Himalayas to Beijing
by way of the COMEX. We could
be witnessing the death of JPM and
the gold delivery is part of the
estate distribution that favors
China. Time will tell, or
maybe it will not. It has been suggested
within the Jackass inner circle
that China is in the process of
purchasing the Federal Reserve,
which would surely include the JPMorgan
bank and its headquarter property.
In a related exposure of similar
events and data, see the Gold Silver
Worlds article (CLICK HERE).

◄$$$ THE GOLD PRICE HAS FALLEN BELOW THE CONSENSUS CASH COSTS, AS IT APPROACHES
MARGINAL PRODUCTION COSTS. FOR THE
LESS EFFICIENT AND LESS FORTUNATE
(LOW YIELD) MINING FIRMS, THE MINE
OPERATIONS ARE NO LONGER PROFITABLE.
AN IMPORTANT MILESTONE HAS BEEN
HIT. SUPPLY WILL BE REDUCED IN COMING
MONTHS, AS MANY MORE MINE PROJECTS
WILL BE SHUT DOWN. THE PROCESS HAS
BEGUN. $$$

The intrepid Zero Hedge folks showed back in April that the marginal cost of
gold production in 2013 was estimated
at between $1250 and $1300 per ounce,
including capital expenditures (CAPEX).
When some marketing costs are included,
it consists of the all-in cost,
as now referred. To be more specific,
this range level was the 90% percentile
among the many mining firms with
significant output. Conclude
that as of early December, gold
has been trading below not only
the cash cost, but could soon be
approaching the marginal cash cost
of $1125 per ounce. The potential
repercussions from the coordinated
suppression with government collusion
are a grand backfire on the central
bankers, if not already. Major disruptions
are sure to come and soon, like
big project shutdowns. They will
be delayed due to contractual obligations.
Added costs will be absorbed by
the shutdowns. The effect on output
will be clearly visible. Expect
a skein of high profile bankruptcies,
job cuts, and some social disorder.
Prudent management dictates that
projects be taken off-line and mothballed.
The banker elite are cornered by
their own corruption and massive
interference with markets (pretensions
with Messiah complex mixed with
megalomania and intense greed).
The disorder in Africa is gaining
attention, where China has devoted significant Foreign Direct Investment.
See the Zero Hedge article (CLICK
HERE).

Implications to certain companies can be foreseen. Those marginal firms that
do not halt unprofitable production
will report miserable earnings and
experience investor anger. The following
mines in the graph display the gold
cost curve, one by one. Those firms
starting on the right are the high
cost producers, certain to fall
or fail. Their production is going
to go dark, even without the recent
demand by South African gold miner
labor unions to have their wages
doubled. After more than a century
as the world's foremost gold producer,
South Africa has slumped to sixth position under
the specter of marxism and grotesque
mismanagement. The decline of
mine output is assured. Worse, this
is a dynamic system. The demand
rises with lower price, forcing
a more rapid depletion. Some instances
have already occurred of projects
going off-line, or delayed for inception.
The lowest cost producers actually
deserve an asterisk. Their gold
cost is reduced from by-product
output like with copper.

Many mining companies have announced plans to shutter mines or reduce operations
from Nevada
and Peru
in the Americas to Papua New Guinea in the Pacific region. The suppression
of the gold price (by Wall Street
action on COMEX) coupled with the
rising costs (from USFed QE bond
monetization) has caused mayhem
to mining firm operations. Numerous
mine projects are being shut down.
See the Bloomberg article (CLICK
HERE).

◄$$$ JIM SINCLAIR ON AN EXCELLENT REVIEW OF THE GOLD MARKET, THE CURRENCIES,
AND BANK POLICY. THE GREAT FLUSHING (IN 2008) WILL BE FOLLOWED BY THE GREAT LEVELING, STARTING
NEXT YEAR. HE FORESEES A $50,000/OZ
GOLD PRICE, AFTER THE EMANCIPATION
OF GOLD FROM THE PAPER COMEX EXCHANGE.
$$$

Jim Sinclair shares great wisdom in an excellent review of many very complicated
topics, tying them together in relatively
simple terms to understand. He
explains why the Price of Gold will
rise an order of magnitude, when
the COMEX removes the connection
of futures contracts with gold delivered
under that contract. The banks
have created the internal rules,
whereby deposits have been converted
to unsecured lenders with no standing.
The bail-in will take over as policy,
extracting wealth from bond holders
and depositors, replacing the past
bail-outs done by the governments.
The currencies will adjust according
to the individual nations and their
respect for gold and its proper
accounting. In the next couple years,
the Great Currency Reset will take
root with the United States not participating properly. The
eradication of the US Middle Class
is happening in the US, the rest of the
process to wipe out the white collar
segment of the Middle Class. When
the reset occurs, the banks will
re-write the home loan contracts
(and other contracts) to protect
themselves, whereby the balances
will be reset higher according to
the new devalued currency. Homeowners
will face a much higher loan balance,
the precedent being firmly established
in the Mexican Peso reset of 1994.

The Petro-Dollar is being quickly phased out. As soon as the Saudis accept
non-US$ payments for crude oil,
the USD index will fall from the
80 level to around 50, and the price
of gasoline inside the USEconomy
will rise to $10/gallon. The
US-DX chart shows numerous Head
& Shoulders bearish reversal
patterns over the past two or three
decades. A breakdown will be catastrophic.
Also and curiously in bizarre fashion,
Saudi
Arabia might
be declared a terrorist nation by
the USGovt. He clearly states that
price inflation in the United
States will
be a currency phenomenon, not a
monetary effect. The price of
Gold, emancipated from the paper
exchanges, will go to $50,000 per
ounce, after a difficult struggle
to find the $3200 to $3500 level,
according to Sinclair. He is
part of some Eastern new system
design, like in Singapore.
See the USA Watchdog interview with
Greg Hunter (CLICK HERE). The Voice is part
of the new system design in Russia
& China.

◄$$$ CHECK OUT THE SRSROCCO SILVER ANALYSIS WITH CHARTS. $$$

Friend and colleague SRS Rocco provides a fine comprehensive review of the silver
market in brief form. He covers
the coin sales, silver fabrication,
base metal prices, cash cost to
produce silver, and silver investment
volume. It is well worth the time
to read. See the SRS Rocco Report
article (CLICK HERE).

## USECONOMY ON DEATH ROW

◄$$$ PERSONAL COMPUTER SHIPMENTS WORLDWIDE ARE IN A TAILSPIN, THE DECLINE
IN GLOBAL PC SHIPMENTS WILL BE 10.1%
THIS YEAR. BLAME IS GIVEN TO THE
RECESSION BUT ALSO A POWERFUL TREND
TOWARD HANDHELD PROCESSOR DEVICES
LIKE THE I-PAD. $$$

The advent of smart phones, computer pads, and other hand-held devices has made
a serious headwind for original
purchase and upgrade in personal
computers. Interest in PCs has remained
limited. The IDC reports that personal
computer shipments are projected
to fall 10.1% this year, by far
the biggest annual decline on record.
At IDC's projected sales rates,
shipments worldwide will stay at
just more than 300 million units
through 2017, or barely above 2008
levels. See the Zero Hedge article
(CLICK HERE).

◄$$$ THE US-HOUSING MARKET APPROACHES A CLIFF. WEAKNESS IS SEEN IN ALMOST
EVERY REGION AND CITY. WORSE, THE
WEAKNESS APPEARS DURING THE STRONGEST
SEASON. $$$

The signals are countless. Homebuilder company executives have been dumping
their shares at a stunning pace.
Promoted as a housing market recovery
by the financial media, Wall Street,
and the Obama Admin, the recovery
has been a sham at worst, and a
dead cat bounce at best. It is mired
in a long-term bear market, with
no resolution from multi-$trillion
mortgage bond fraud and countless
attendant contract case examples,
enabled by the fraudulent MERS title
database concoction. Both price
and transaction volume have been
artificially manufactured through
the use of direct USFed money printing,
USGovt implemented mortgage programs,
Private Equity Fund block home purchase
programs, and outright bank accounting
fraud, even bank operation fraud.
The big banks continue to exploit
the accounting and regulatory loopholes
in order to continue their schemes.
The housing market bounce is transforming
quickly into a rapid decline. A
compelling tagline in the sequential
decline for almost every housing
market metric is its occurrence
in the market's strongest seasonal
period. See the Truth in Gold article
(CLICK HERE).

◄$$$ THE USECONOMY IS ON DEATH ROW, SEEN IN THREE GRAPHS. IT HAS TRAGICALLY
FALLEN AND CANNOT GET UP. THE FASCIST
BUSINESS MODEL HAS BEEN DESTRUCTIVE
IN A TOTAL SENSE. $$$

As US businesses adapt to difficult economic times,
they prefer the part-time worker
concept. Lower fringe benefits are
given, along with lower wage. They
face broad-based cost increases
for a wide spectrum of business.
The ObamaCare fiasco has induced
thousands of companies to reduce
hours and to emphasize the part-time
worker. This is not a USEconomic
recovery.

Since the broad-based offshoring and outsourcing of US industry to Asia,
the impact to impact has been profound.
The trend began in the 1980 decade.
The initial push down in income
came in the 1970 decade, with the
quadruple in oil prices during the
highly disruptive Arab Oil Embargo.
Price inflation ravaged worker incomes.
The effect of the Chinese industrial
rise after given the Most Favored
Nation status in 1999 is clear.
Income among US workers fell again.
The trend is as clear as it is ugly.
This is not a USEconomic recovery.

Irony is thick. Since the USFed began its disastrous bond monetization initiatives,
QE to Infinity better described,
the assault on business is thorough.
The adopted hyper monetary inflation
kills capital. Since year 2011,
the decline in revenues for the
major US
corporations is clear, or rather
the growth rate decline. Soon the
growth will go negative, and the
USFed QE program will be openly
criticized as destructive and hardly
stimulus. The trend is as clear
as it is ugly. This is not a USEconomic
recovery. See the Market Oracle
article (CLICK HERE).

◄$$$ INTERBANK LOANS ARE COMATOSE, INDICATIVE OF ZERO RECOVERY IN THE
USECONOMY. THE CHICAGO FED NATIONAL ACTIVITY INDEX SLIPPED IN OCTOBER. $$$

A handy comatose meter is found in the Chicago Economic Diffusion index. It
fell in October. The more representative
three-month moving average improved
to 0.06 from minus 0.02, indicating
the economy has leveled off in its
coma. The employment indicators
fell, as the labor participation
rate stands at its most dismal level
ever. It is working its way under
the magic 60% level. No recovery
is evident. The QE to Infinity will
be needed in defense and support
of the entire system. So conclude
that with continued USEconomic deterioration,
the tax revenues will be way short.
The USGovt deficits will rise above
$1 trillion per year again easily.
The USFed will be forced to cover
the deficits, since national savings
is nowhere. The debt issuance will
continue from the capital dome helm,
covered by phony money coming off
the press running side by side.
Add to the above factors the wet
blanket known as ObamaCare, a massive
burden on businesses. This is not
a USEconomic recovery.

The De-industrialized Third World awaits the United
States for
the crimes of unsound money, bank
fraud, derivatives sleight of hand,
asset bubble dependence, chronic
predatory war mongering, bad economic
policy, and dispatch of industry
to Asia. The
adoption of the Fascist Business
Model has resulted in systemic failure,
precisely as predicted in the Hat
Trick Letter since year 2006. The
Jackass declares DI3W dead ahead.

◄$$$ FOOD HUNGER IN BRITAIN IS GAINING PUBLIC
ATTENTION. FOLLOWING THE UNITED
STATES ON THE PROPERTY BUBBLE HAS
PROVED TO LEAD TO A SIMILAR SYSTEMIC
BREAKDOWN AND WIDESPREAD POVERTY.
$$$

Food poverty in the United Kingdom has reached
Public Health Emergency levels,
having drawn attention to the plight
of the public. The United
States is not
alone in the frightening rise in
Food Stamps usage and participation.
The latest spotlight to this national
tragedy comes via a formal letter
scribed by a group of doctors and
senior academics from the Medical
Research Council and two leading
universities, sent to the British
Medical Journal. They accused the
UKGovt of covering up the problem
by delaying a report on the subject.
A surge in the number of people
requiring emergency food aid, a
decrease in the amount of calories
consumed by British families, and
a doubling of the number of malnutrition
cases seen at English hospitals
represent all the signs of a public
health emergency. They urge preventative
action. Chris Mould, chief executive
of the largest national food bank
provider Trussell Trust, said that
one in three of the 350,000 people
who required a food bank donations
this year were children. See the
Zero Hedge article (CLICK HERE)
and the UK Independent article (CLICK
HERE).

The De-industrialized Third World awaits Great
Britain for
the crimes of unsound money, bank
fraud, derivatives sleight of hand,
asset bubble dependence, chronic
predatory war mongering, bad economic
policy, and dispatch of industry
to Asia. The
adoption of the Fascist Business
Model has resulted in systemic failure,
precisely as predicted in the Hat
Trick Letter since year 2006. The
Jackass declares DI3W dead ahead.